Up to 50% Support for Foreign Investment in National Advanced Strategic Technology Sector

Ministry of Industry Revises Cash Support System Operation Guidelines
"Continuous Improvement of Domestic Investment-Related Systems for Foreign-Invested Companies"

Foreign investment in national advanced strategic technology sectors such as semiconductors, secondary batteries, and displays will be eligible to receive subsidies covering up to 50% of the investment amount.

On the 26th, the Ministry of Trade, Industry and Energy announced that it held the 110th Foreign Investment Committee meeting and reviewed and approved the amendment to the cash support system operation guidelines reflecting this content. For foreign investments in sectors related to national advanced strategic technologies under the National Advanced Strategic Industry Act, such as semiconductors, secondary batteries, and displays, the cash support ratio will be increased up to 50% of the investment amount, and the national government’s share ratio will also be raised by 10 percentage points.

The Ministry of Trade, Industry and Energy is revising the cash support system operation guidelines to expand the attraction of high-quality foreign investment related to advanced industries. The main amendments include ▲strengthening incentives for foreign investment related to national advanced strategic technologies ▲establishing grounds for utilizing a preliminary review system for national strategic technologies, etc. ▲relaxing requirements for cash support on expansion investments.

The preliminary review system will also be restructured so that foreign-invested companies can predict the possibility and scale of cash support at the investment review stage. Simplified documents will be submitted compared to before, and priority will be given to national strategic technologies, national advanced strategic technologies, and small investments under 5 million USD. Additionally, the requirements for expansion investments eligible for cash support will be relaxed, allowing subsidies for cases such as vertical expansion of factory facilities increasing total floor area and installation of new equipment in idle spaces within existing buildings.

The guidelines for operating foreign investment zones will also be revised. The amendments will supplement current system shortcomings by specifying the timing of ownership transfer of land after the creation of complex-type foreign investment zones, and simplify procedures by allowing the omission of evaluation processes and Ministry of Trade, Industry and Energy approval when installing solar power generation facilities on leased land for self-generation purposes.

An official from the Ministry of Trade, Industry and Energy stated, "We will continue to expand incentives such as cash support, site support, and tax benefits to create a more attractive investment environment for foreign-invested companies, and improve systems related to domestic investment activities of foreign-invested companies."

This content was produced with the assistance of AI translation services.